Taking a major decision, US President Donald Trump has given temporary permission to all countries to buy Russian oil for 30 days. This decision has been taken at a time when there is immense pressure in the global oil market due to the ongoing war in the Middle East and crude oil prices have reached above $ 100 per barrel. Oil supply has been badly affected due to the ongoing conflict between Iran and Israel. Especially the situation has become more serious due to the closure of the Strait of Hormuz. This sea route is one of the most important oil routes in the world and usually about 20 to 25 percent of the world’s total daily oil consumption passes through this route.
The US Treasury Department said on Thursday (12 March 2026) that it has issued a temporary license, under which Russian crude oil and petroleum products loaded in ships can be bought and sold until March 12. This permission will remain in effect till midnight on April 11, Washington time. This decision can open the way for the market to reach about 124 to 125 million barrels of Russian oil stranded at about 30 different places around the world. This is expected to reduce the sudden reduction in global oil supply to some extent. Earlier on March 5, the US had issued a separate 30-day exemption, under which India was allowed to buy Russian oil cargo stranded at sea. The purpose of this decision was to provide some relief to oil importers during the crisis.
Statement by US Finance Minister Scott Besant
US Finance Minister Scott Besant said that this step has been taken for a limited time and under very special circumstances. He also said that Russia will not get much economic benefit from this. Meanwhile, the US Energy Department has also announced that America will release 172 million barrels of crude oil into the market from its strategic oil reserves. This step has been taken to control rising fuel prices. This decision is part of a larger plan being done in collaboration with the International Energy Agency. The 32 member countries of this agency together have promised to release about 400 million barrels of oil in the market. According to the agency, due to the current war, the world is facing the biggest oil supply disruption in history.
Oil price before Iran war started
Before the start of the war against Iran, the price of crude oil was around $73 to $75 per barrel before February 28, but after the start of the attack and the attacks on ships in the Gulf region, prices rose rapidly to above $100 per barrel. Iran has almost completely closed the Strait of Hormuz since the beginning of the war. This narrow sea route connects the Persian Gulf to the Gulf of Oman and the Arabian Sea and is considered very important for global oil trade. According to reports, at least 16 ships have been attacked in this route so far and Iran has warned of continuing attacks in the future. Meanwhile, Iran’s new supreme leader Mojtaba Khamenei, in his first statement after assuming office, said that it is necessary to keep the Strait of Hormuz closed. His statement indicates that there is little possibility of this route reopening in the near future.
